Implementing Regulations of the Law of the People's Republic of China on the Promotion of Private Education (Revised in 2021)
Implementing Regulations of the Law of the People's Republic of China on the Promotion of Private Education (Revised in 2021)
Implementing Regulations of the Law of the People's Republic of China on the Promotion of Private Education (Revised in 2021)
April 7, 2021
Order of the State Council of the People's Republic of China No. 741
The revised Implementing Regulations of the Law of the People's Republic of China on the Promotion of Private Education are hereby promulgated and shall come into force on September 1, 2021.
Premier: Li Keqiang
Implementing Regulations of the Law of the People's Republic of China on the Promotion of Private Education
(Issued under the Order of the State Council of the People's Republic of China No. 399 on March 5, 2004, and revised under the Order of the State Council of the People's Republic of China No. 741 on April 7, 2021)
Chapter I General Provisions
Article 1 The Implementing Regulations of the Law of the People's Republic of China on the Promotion of Private Education (hereinafter referred to as the "Regulations") are enacted in accordance with the Law of the People's Republic of China on the Promotion of Private Education (hereinafter referred to as the "Law on the Promotion of Private Education").
Article 2 Social organizations or individuals other than state agencies may sponsor various levels and types of private schools with non-governmental financial funds, provided that such private schools do not provide military, police, political or other education of a special nature.
The "governmental financial funds" as used in the Law on the Promotion of Private Education and these Regulations shall refer to fiscal funds allocated or fiscal funds legally obtained and to be turned over to the State treasury or a special fiscal account.
Article 3 People's governments at all levels shall, in accordance with the law, support and regulate the sponsorship of private education by non-governmental sectors, protect the legal operation and independent management of private schools, and encourage and guide private schools to improve quality and build their own characteristics to meet diverse educational needs.
Social organizations or individuals that have made outstanding contributions to sponsoring private schools or developing private education will be awarded and commended under the relevant State regulations.
Article 4 Private schools shall uphold the leadership of the Communist Party of China (the “Party”), maintain a socialist orientation in their operation, insist on the public benefit nature of education, enhance the education of their students on the core socialist values, and practice the fundamental mission of fostering talent with high moral standards.
The grass-roots Party organizations established within private schools shall practice the Party's guidelines and policies, participate in the making of major school decisions, and perform oversight in accordance with laws, administrative regulations and relevant State regulations.
Chapter II Establishment of Private Schools
Article 5 Social organizations or individuals other than state agencies may sponsor private schools on their own or jointly with others. In the case of a joint sponsorship of a private school, a joint sponsorship agreement shall be executed to establish the manner of cooperation, the rights and obligations of the parties, and the dispute resolution method.
The State encourages the sponsorship of private schools through donations or a foundation set up or in any other form in accordance with the law. Where a private school is sponsored through donations or in other forms without a sponsor, the rights and responsibilities of the sponsor in the course of the operation of the school shall be performed by the initiator.
Foreign-invested enterprises established in China and social organizations actually controlled by a foreign party are not allowed to sponsor, participate in sponsoring or actually control any private school providing compulsory education; for the sponsorship of other types of private schools, the State regulations related to foreign investment shall be complied with.
Article 6 Social organizations or individuals to establish a private school shall have a good credit standing. The capital contributions made for the establishment of a private school may be made in cash, in kind, or in the form of any land use right, intellectual property or other non-monetary property that can be valued in monetary terms and legally transferred, except for any property that may not be contributed as capital according to laws or administrative regulations.
Article 7 Public schools providing compulsory education shall not sponsor or participate in sponsoring private schools, or convert themselves into private schools. Other public schools shall not sponsor or participate in sponsoring for-profit private schools. But public schools providing vocational education may sponsor or participate sponsoring for-profit private schools that provide vocational education by attracting capital, technology, management or other elements from the business sector.
A public school that sponsors or participates in sponsoring a private school shall not use governmental financial funds, shall not affect the educational or teaching activities of its own public school, and shall not participate in the establishment in the form of only providing its brand, and shall obtain the approval of the authority with competent jurisdiction over it. A public school that sponsors or participates in sponsoring a non-profit private school shall not make profits by charging administrative fees or in any disguised form.
A private school established by or with the participation of a public school shall be an independent legal person, have separate campus, basic educational and teaching facilities and full-time teaching staff from the public school, carry out independent accounting under the uniform accounting system of the State, admit students separately, and issue academic credentials separately.
A public school that sponsors or participates in sponsoring a private school shall be legally entitled to the sponsor’s rights and perform the obligation of managing state-owned assets as required by law.
Article 8 Local people's governments shall not sponsor or participate in sponsoring any private school providing compulsory education by making use of a state-owned enterprise or any public educational resources.
Those who participate in sponsoring a private school with any state-owned assets shall, as required by the State regulations related to the supervision and management of state-owned assets, appoint a qualified intermediary agency to make an evaluation in accordance with the law, and based on the evaluation result, reasonably determine the amount of capital contributions, and file a record with the authority in charge of overseeing the said state-owned assets.
Article 9 The State encourages enterprises to legally sponsor or participate in sponsoring private schools that provide vocational education through sole proprietorship, equity or cooperative joint venture or in some other form.
Article 10 The sponsor of a private school shall fulfill its capital contribution obligation in full and on time. During the period of existence of a private school, the sponsor of the school is prohibited from withdrawing its contributed capital from the school or misappropriating the school operating funds.
A sponsor may legally raise funds to sponsor a for-profit private school. The sponsor shall use the funds raised mainly for operating the school, report the use of the raised funds to the approval authority and fulfill the obligation of information disclosure. No private school or its sponsor is allowed to charge or charge in a disguised form, fees associated with admitting any student in the name of sponsorship or the like from students or their parents.
Article 11 The sponsor shall establish the bylaws of the school sponsored in accordance with the law, and be responsible for electing members of the initial executive council or board of directors or decision-making body in some other form.
The sponsor may participate in or appoint a representative to participate in the executive council, board of directors or decision-making body in some other form as per the procedures and requirements set forth in laws, regulations and the school's bylaws, and may exercise the corresponding decision-making and management powers in accordance with the authority conferred on it by the school's bylaws.
Article 12 For a change of sponsor of a private school, an agreement for the change shall be executed, but such change shall not involve the legal property of the school, or affect the development of the school, or cause harm to the rights and interests of its teachers or students.
If the sponsor of a private school no longer meets the statutory criteria, it shall apply to the approval authority for a change of sponsor within six months; if the change is not made within the time limit, the approval authority shall order the sponsor to make such change.
If the sponsor is a legal person, its controlling shareholder and actual controller shall meet the criteria for sponsoring a private school as provided in laws or administrative regulations, and for a change of the controlling shareholder or actual controller, a record shall be filed with the competent authority and disclosure shall be made.
Where the statutory criteria are met, a change of sponsor shall be processed by the approval authority within the prescribed time limit.
Article 13 A sponsor or actual controller of more than one private school shall have the funds, human resources, institutional structures and other conditions and capacities commensurate with the school operating activities to be carried out, and shall be responsible for managing and overseeing the private schools sponsored or controlled.
Where a sponsor or actually controller of more than one private school provides teaching materials, curriculums, technical support or other services to the private schools sponsored or actually controlled, or organize educational and teaching activities for the schools, the relevant State regulations shall be complied with, and appropriate quality standard and safeguard mechanism shall be established.
A sponsor or actual controller of more than one private school shall ensure that the private schools sponsored or actually controlled run their school activities legally and independently, and all assets of any school be managed and used legally by that school during the period of its existence; the nature of any non-profit private school sponsored or actually controlled may not be changed to make profits directly or directly from operating the school; and there shall not be any abuse of a dominant market position to exclude or restrict competition.
No social organization or individual may control a private school providing compulsory education or non-profit private school providing pre-school education through merger and acquisition, contractual control or in any other form.
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April 7, 2021
Order of the State Council of the People's Republic of China No. 741
The revised Implementing Regulations of the Law of the People's Republic of China on the Promotion of Private Education are hereby promulgated and shall come into force on September 1, 2021.
Premier: Li Keqiang
Implementing Regulations of the Law of the People's Republic of China on the Promotion of Private Education
(Issued under the Order of the State Council of the People's Republic of China No. 399 on March 5, 2004, and revised under the Order of the State Council of the People's Republic of China No. 741 on April 7, 2021)
Chapter I General Provisions
Article 1 The Implementing Regulations of the Law of the People's Republic of China on the Promotion of Private Education (hereinafter referred to as the "Regulations") are enacted in accordance with the Law of the People's Republic of China on the Promotion of Private Education (hereinafter referred to as the "Law on the Promotion of Private Education").
Article 2 Social organizations or individuals other than state agencies may sponsor various levels and types of private schools with non-governmental financial funds, provided that such private schools do not provide military, police, political or other education of a special nature.
The "governmental financial funds" as used in the Law on the Promotion of Private Education and these Regulations shall refer to fiscal funds allocated or fiscal funds legally obtained and to be turned over to the State treasury or a special fiscal account.
Article 3 People's governments at all levels shall, in accordance with the law, support and regulate the sponsorship of private education by non-governmental sectors, protect the legal operation and independent management of private schools, and encourage and guide private schools to improve quality and build their own characteristics to meet diverse educational needs.
Social organizations or individuals that have made outstanding contributions to sponsoring private schools or developing private education will be awarded and commended under the relevant State regulations.
Article 4 Private schools shall uphold the leadership of the Communist Party of China (the “Party”), maintain a socialist orientation in their operation, insist on the public benefit nature of education, enhance the education of their students on the core socialist values, and practice the fundamental mission of fostering talent with high moral standards.
The grass-roots Party organizations established within private schools shall practice the Party's guidelines and policies, participate in the making of major school decisions, and perform oversight in accordance with laws, administrative regulations and relevant State regulations.
Chapter II Establishment of Private Schools
Article 5 Social organizations or individuals other than state agencies may sponsor private schools on their own or jointly with others. In the case of a joint sponsorship of a private school, a joint sponsorship agreement shall be executed to establish the manner of cooperation, the rights and obligations of the parties, and the dispute resolution method.
The State encourages the sponsorship of private schools through donations or a foundation set up or in any other form in accordance with the law. Where a private school is sponsored through donations or in other forms without a sponsor, the rights and responsibilities of the sponsor in the course of the operation of the school shall be performed by the initiator.
Foreign-invested enterprises established in China and social organizations actually controlled by a foreign party are not allowed to sponsor, participate in sponsoring or actually control any private school providing compulsory education; for the sponsorship of other types of private schools, the State regulations related to foreign investment shall be complied with.
Article 6 Social organizations or individuals to establish a private school shall have a good credit standing. The capital contributions made for the establishment of a private school may be made in cash, in kind, or in the form of any land use right, intellectual property or other non-monetary property that can be valued in monetary terms and legally transferred, except for any property that may not be contributed as capital according to laws or administrative regulations.
Article 7 Public schools providing compulsory education shall not sponsor or participate in sponsoring private schools, or convert themselves into private schools. Other public schools shall not sponsor or participate in sponsoring for-profit private schools. But public schools providing vocational education may sponsor or participate sponsoring for-profit private schools that provide vocational education by attracting capital, technology, management or other elements from the business sector.
A public school that sponsors or participates in sponsoring a private school shall not use governmental financial funds, shall not affect the educational or teaching activities of its own public school, and shall not participate in the establishment in the form of only providing its brand, and shall obtain the approval of the authority with competent jurisdiction over it. A public school that sponsors or participates in sponsoring a non-profit private school shall not make profits by charging administrative fees or in any disguised form.
A private school established by or with the participation of a public school shall be an independent legal person, have separate campus, basic educational and teaching facilities and full-time teaching staff from the public school, carry out independent accounting under the uniform accounting system of the State, admit students separately, and issue academic credentials separately.
A public school that sponsors or participates in sponsoring a private school shall be legally entitled to the sponsor’s rights and perform the obligation of managing state-owned assets as required by law.
Article 8 Local people's governments shall not sponsor or participate in sponsoring any private school providing compulsory education by making use of a state-owned enterprise or any public educational resources.
Those who participate in sponsoring a private school with any state-owned assets shall, as required by the State regulations related to the supervision and management of state-owned assets, appoint a qualified intermediary agency to make an evaluation in accordance with the law, and based on the evaluation result, reasonably determine the amount of capital contributions, and file a record with the authority in charge of overseeing the said state-owned assets.
Article 9 The State encourages enterprises to legally sponsor or participate in sponsoring private schools that provide vocational education through sole proprietorship, equity or cooperative joint venture or in some other form.
Article 10 The sponsor of a private school shall fulfill its capital contribution obligation in full and on time. During the period of existence of a private school, the sponsor of the school is prohibited from withdrawing its contributed capital from the school or misappropriating the school operating funds.
A sponsor may legally raise funds to sponsor a for-profit private school. The sponsor shall use the funds raised mainly for operating the school, report the use of the raised funds to the approval authority and fulfill the obligation of information disclosure. No private school or its sponsor is allowed to charge or charge in a disguised form, fees associated with admitting any student in the name of sponsorship or the like from students or their parents.
Article 11 The sponsor shall establish the bylaws of the school sponsored in accordance with the law, and be responsible for electing members of the initial executive council or board of directors or decision-making body in some other form.
The sponsor may participate in or appoint a representative to participate in the executive council, board of directors or decision-making body in some other form as per the procedures and requirements set forth in laws, regulations and the school's bylaws, and may exercise the corresponding decision-making and management powers in accordance with the authority conferred on it by the school's bylaws.
Article 12 For a change of sponsor of a private school, an agreement for the change shall be executed, but such change shall not involve the legal property of the school, or affect the development of the school, or cause harm to the rights and interests of its teachers or students.
If the sponsor of a private school no longer meets the statutory criteria, it shall apply to the approval authority for a change of sponsor within six months; if the change is not made within the time limit, the approval authority shall order the sponsor to make such change.
If the sponsor is a legal person, its controlling shareholder and actual controller shall meet the criteria for sponsoring a private school as provided in laws or administrative regulations, and for a change of the controlling shareholder or actual controller, a record shall be filed with the competent authority and disclosure shall be made.
Where the statutory criteria are met, a change of sponsor shall be processed by the approval authority within the prescribed time limit.
Article 13 A sponsor or actual controller of more than one private school shall have the funds, human resources, institutional structures and other conditions and capacities commensurate with the school operating activities to be carried out, and shall be responsible for managing and overseeing the private schools sponsored or controlled.
Where a sponsor or actually controller of more than one private school provides teaching materials, curriculums, technical support or other services to the private schools sponsored or actually controlled, or organize educational and teaching activities for the schools, the relevant State regulations shall be complied with, and appropriate quality standard and safeguard mechanism shall be established.
A sponsor or actual controller of more than one private school shall ensure that the private schools sponsored or actually controlled run their school activities legally and independently, and all assets of any school be managed and used legally by that school during the period of its existence; the nature of any non-profit private school sponsored or actually controlled may not be changed to make profits directly or directly from operating the school; and there shall not be any abuse of a dominant market position to exclude or restrict competition.
No social organization or individual may control a private school providing compulsory education or non-profit private school providing pre-school education through merger and acquisition, contractual control or in any other form.
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